($000 Omitted Except for Net Earnings per Share)                   For the Three Months Ended March 31,                  ------------------------------------                                                    2009           2008                                                  -------       -------    Net sales                                      $52,986       $56,861   Gross profit                                    16,298        13,483   Operating expenses                               6,988         6,079                                                  -------       -------   Earnings from operations                         9,310         7,404   Other expense                                     (144)         (213)                                                  -------       -------   Earnings before income tax expense               9,166         7,191   Income tax expense                               3,068         2,550                                                  -------       -------   Net earnings                                   $ 6,098       $ 4,641                                                  =======       =======    Basic net earnings per common share            $  0.34       $  0.26   Diluted net earnings per common share          $  0.32       $  0.25    Shares used in the calculation of diluted net    earnings per common share                      19,029        18,853 

Record Results for Earnings

For the first quarter ended March 31, 2009, the company achieved record net earnings of $6.1 million, an increase of $1.5 million, or 31.4%. The $6.1 million generated diluted net earnings per common share of $0.32 versus $0.25 for the prior year comparable period, an increase of 28.0%. Net sales of $53.0 million was a decrease of approximately 6.8% below the $56.9 million result of the prior year comparable quarter, and off a modest 2.0% sequentially from fourth quarter 2008.

Detailing this first quarter of 2009, the Animal Nutrition and Health segment achieved quarterly sales of $35.9 million, a decrease of $3.2 million, or 8.3%, from the prior year quarter. Sales in this segment were negatively impacted by approximately 4% due to foreign currency fluctuation associated with the Italian operation. Within this segment, the specialty animal nutrition and health products, targeted predominantly for ruminant animals, realized approximately 4.1% growth over the 2008 first quarter results and 10.0 % growth sequentially, with continued strong sales of Reashure(r) and Nitroshure(r), in addition to new sales generated from AminoShure(tm)-L., our rumen protected lysine. These increases were partially offset by slowness in international sales of the chelated mineral products. Sales of feed grade choline and industrial derivatives declined approximately 10.3% from the prior year quarter principally due to declines in volumes sold into the well-publicized soft poultry industry, including slower international sales largely related to the strengthening of the U.S. dollar in 2009 versus a weakening dollar in 2008. Sales of industrial derivatives (both choline and methylamines) were impacted by softness in the industrial sector, principally caused by the general economic downturn. Through all of these market activities, earnings from operations for the entire ANH segment did increase to $5.0 million as compared to $3.3 million in the prior year comparable quarter, largely due to favorable product mix, strong sales from our Italian operation, and reductions in the cost of certain petro-chemical commodities used to manufacture choline and derivatives.

Sales of the Food, Pharma and Nutrition segment were $8.3 million, a decrease of 10.6% or $1.0 million from the prior year comparable quarter; however, sales did grow approximately 9.6% on a sequential basis. Quarterly comparative sales results for this segment continue to reflect the roller-coaster effect of pipeline fills, inventory level management, and some effects of the worldwide economic downturn. The domestic food sector was up, as we continued to see growth from the launch of Choline into new food applications, as well as growth in the bakery, tortilla and preservation markets.